Overview

While there have been many changes in the book over the past decade, the goal remains the same: to provide students with the tools from intermediate microeconomics, game theory, and industrial organization that they need to make sound managerial decisions. The book begins by teaching managers the practical utility of basic economic tools such as present value analysis, supply and demand, regression, indifference curves, isoquants, production, costs, and the basic models of perfect competition, monopoly, and monopolistic competition.

Adopters and reviewers also praise the book for its real-world examples and appreciate its inclusion of modern topics that are not found in any other single managerial economics textbook: oligopoly, penetration pricing, multistage and repeated games, foreclosure, contracting, vertical and horizontal integration, networks, bargaining, predatory pricing, principal-agent problems, raising rival’s costs, adverse selection, auctions, screening and signaling, search, limit pricing and a host of other pricing strategies for firms enjoying market power.

This balanced coverage of traditional and modern microeconomic tools makes it appropriate for a wide variety of managerial economics classrooms. An increasing number of business schools are adopting this book to replace (or use alongside) managerial strategy texts laden with anecdotes but lacking the microeconomic tools needed to identify and implement the business strategies that are optimal in a given situation.

This fourth edition of Managerial Economics and Business Strategy is the most thorough revision to date. It contains all new problems, updates data, and boxes examples. There is also a brand new chapter on advanced topics in business strategy. Nonetheless, McGraw-Hill and the author have made it very easy for longtime adopters to transition to the forth edition. While all material has been updates and improved where appropriate, the basic structure of the first twelve chapters is unchanged.

2002 McGraw-Hill Higher Education
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